SECRETS TO EARNING SAFE 12% RETURNS

The following information could increase your investment yields by thousands of dollars in the coming years.

SafePath Investments is a group of professional real estate investors and we would like to introduce you to methods that give you greater control over your investments and safely make them grow at two to five times your current rate.  Does this sound too good to be true?  Well, the truth is, it is not. Many private investors just like you are currently enjoying these rates of return with minimum or no risk. 

Smart investors have been utilizing this investment opportunity for years.  In fact, there have been entire companies built around this strategy. This is a very safe investment that produces a high rates of return while at the same time provides higher level of security and liquidity.

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Tips for buying a house

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

We are always rehabbing and making homes look brand new.
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Renovate your kitchen on a budget before you sell

Before you get started, questions to ask:

• What is my kitchen's location? If it's facing south, east or west, you can choose a darker color. But if it's facing north, always keep it light to make the kitchen look larger
• How big do I want my kitchen be? How will I use the space?
• What work can I do and what work should someone else do?
• Am I a handyman?

Plan smart

• Most of the savings is in the planning
• Don't move the stove or the sink to a different location. Moving gas, plumbing and drain lines is very expensive (It costs about $2000 to move a sink)
• Plan your lighting ahead of time. Upgrade your lighting at the same time you're doing the electrical. If not, you'll have to bring the electrician back costing you a lot more
• Most kitchen cabinet stores will lay out your kitchen for free and Home Depot will charge a $100 measure fee (this fee is deducted/applied to the cost of the installation project if a customer decides to purchase installation through Home Depot).
• Bring a kitchen sketch with your sink, stove and window locations marked

You can figure out your labor cost by multiplying your material cost by 1.5 3. Here are the big expenses in renovating a kitchen The average kitchen renovation costs between $15-20,000 without the appliances. If you make the right improvements, you can expect an 80-90% return on your investment. The single best improvement that makes back the most money is putting a window in your kitchen. A window costs about $1000, and a French door costs about $3000. You'll get double your money back.

Tips for handling appliance

• The big status appliances still are Subzero, Viking, Miele
• Today everybody's making expensive looking stainless steel appliances that can fool even the most expert eyes
• Do perfect Mealy knockoffs with Whirlpool and Frigidaire
• If you shop around for appliances, you can even buy open box, slightly scratched appliances for 40-60% off and they still come with the full warranties and will sometimes give you an extra year warranty if you ask
• Buy a gas stove, nobody wants to cook on an electric stove

Cabinets

• You can reface your old wooden cabinets by sanding them down to the bare wood and applying polyurethane or staining them an entirely different color
• If you must replace your cabinets, install particle board cabinet boxes and solid wood fronts
• Not putting in hardwood will bring the cost down from $400 to $200 each

Countertops

• Granite and Corian are most popular; they look expensive and are expensive, but if you put in inexpensive tile on the backsplash instead, you'll save 30% (and you can pick a color to match your floor or cabinets)
• If you must use Formica, it's looking better these days. They now produce a 45 degree edge which makes the cabinet fronts appear rounded

Electrical

• Don't skimp on electric, it has to be done right. You'll need to install one dedicated circuit for each appliance and two more for your outlets. If you don't, when your refrigerator kicks on, your toaster will blow out.

Flooring

• Ceramic and wood floors cost about the same and are equally attractive to buyers. Choose the one you like.

Carpentry

• This includes trim, doors and sheetrock G. Plumbing
• You can save money by buying your fixtures at auctions on e-bay
• If you don't move anything around, you'll only have to pay about $500 to hook up your dishwasher and sink

Inked up Turbo Sonata..

This is one of my partner's new Turbo Sonata.. She inked it up yesterday, looks pretty cool.. Let me know what you think..

Website http://SafePath4u.com

email SafePath4u@aol.com 

How to Sell Your Own House

1.Clean out your home.  As soon as you decide to sell your house, thoroughly clean it from top to bottom.  Don't forget rarely-cleaned areas such as baseboards, blinds, roof gutters and window wells.  If you don't have time to undertake a deep clean, hire a maid or a cleaning company.  A clean home will help an appraiser see your house in a better light and value it more highly, as well as appealing to buyers.
*Clear up clutter while you clean.  Make your home look more spacious by getting rid of any unnecessary junk.  You'll see a big difference in how your closets look, as well as your garage, porch and bathroom.  Buyers want to feel like they're purchasing sufficient space, and clearing out more of your stuff helps them see themselves in your home.  If you can't bear to part with anything, consider moving the items to a storage unit temporarily.
2.Have your property evaluated.  As much as you'd like to set the price of your home as high as possible, you have to be realistic.  Many for-sale-by-owner listings fail to sell because owners persist in thinking their home is worth more than the market will offer, or because they have already settled on a set amount of money that they want and refuse to budge.  Having a professional, third-party assessment of your home's worth will help you get comfortable with a price range, in addition to providing you with a solid reference point if a buyer or realtor accuses you of setting the price too high.
*Don't just rely on the property tax assessment.  Many property tax assessments are out of date, and they don't necessarily reflect the current real estate market.
*Hire an appraiser.  A certified residential appraiser will come to your house, measure the property, take notes and photos, research information about any land parcels, and assemble a list of comparable sales in your neighborhood to determine the value of your home.  A visit from an appraiser will cost you far less than the services of a real estate agent, and the value the appraiser sets will be more accurate.  Many banks keep a list of reputable appraisers they contact for refinancing or mortgage loans; ask your local branch manager to refer you to an honest, qualified professional.  Once you receive your copy of the appraisal, make a second copy and store it in a secure location.  Keep the first copy on-hand to go over with serious buyers.
*Be aware of the effects of your neighborhood.  If your neighborhood is undergoing a mini boom of strong residential sales, those transactions will increase the value of your home.  Conversely, if your neighborhood has seen a lot of short sales or foreclosures, your home's value will be decreased.  Try to time your listing so that you're not affected by distressed sales.  For instance, in most areas, a comparable sale can only weigh against the value of your home for 90 days after the sale date.  It might be worth it to wait a few months to list your home if you can do it at a higher price.
3.Have your home inspected. Many standard real estate contracts are going to give the home buyer the right to inspect the property, so be prepared. [[Choose a Home Inspection Company|Have your home inspected]] before you advertise. Under a general inspection you might be obligated to make major repairs to appliances, plumbing, septic, electrical and heating systems, etc. You can expect your home’s roof and foundations to be inspected, as well.  Follow the recommendations and make necessary repairs. Additional inspections requested by the buyer are customarily at their expense.
4.Know your selling points.  Before you start marketing your home, write up a list of special selling points  you think will attract buyers.  Potential items include good school districts, recent renovations, benefits that have been grandfathered into the property, energy-saving windows or insulation and new appliances.  Highlight these items in your ads, when you talk to people about your home or while you're showing it.  Memorize them so that you don't forget anything.
5.Time it right.  Be aware that the real estate sector sees a noticeable uptick in business over the summer - people prefer to move when it's warm, and they're reluctant to have their children change schools in the middle of the school year.  Start trying to sell your home in April or May and continue to promote it throughout the summer.  If you haven't sold it by late fall, scale back your efforts and begin marketing more intensely when the weather warms up again.
6. Market your home.  Staking a "For Sale By Owner" sign in your yard is good if you live in a high-traffic neighborhood, but you can go further.
*Advertise online.  Put an ad for your home on a website like Craigslist.  Take out classified ads in your local newspaper and ask if they'll be available on a website as well.  If you use social media sites, mention often that you're selling your house.
*Put up fliers. If local ordinances permit it, place fliers on stoplight poles at prominent intersections.
*Fish out potential buyers. Call local bank managers, as well as school principals, and let them know that you have a great home for sale if they know a family who's looking.  If you know that a nearby company often relocates workers to your area, contact their recruiting or human resources department and tell them you have a home you're ready to sell.  Do whatever you can to get the word out.
*Rely on word of mouth.  Alert your friends, family and business associates that you're selling your house.  If you need to sell quickly, offer them a carrot - say that if they can find someone who's looking for a house and that buyer makes an offer, you'll buy them an expensive bottle of wine, a nice dinner out, or some other reward.
7. Know how to show your home.  When potential buyers or their realtors contact you and want to see the home, try to be as available and flexible as possible.  Be aware that many people will want to see the home in the middle of the day, when you might be working.  If you can't be home for appointments, try to arrange for a close friend or family member to be there.
*Set a peaceful, enticing mood.  Before your potential buyers arrive, quickly clean up any clutter.  Put away food on the counter, throw dishes into the dishwasher, and gather up laundry.  Light a scented candle if you have one, or put a few drops of vanilla on a cookie sheet at put it in the oven at around 250 degrees Fahrenheit (120 Celsius).  Put some light, soft classical music on in the background.  If the weather is nice, open a few windows; if not, light a fireplace or turn the heater up a bit.  These extra little steps will make your home seem inviting and calm.
*Be a good host.  This might seem like obvious advice, but some people are so anxious about selling their home that they forget basic etiquette.  When your potential buyers arrive, greet them with a firm handshake and look them in the eye.  Introduce yourself, and ask and remember their names.  As they step inside your home, ask if you can provide them with a glass of water or light refreshment.  Hone in on their interests (i.e., do they have kids?  Are they empty-nesters?) and talk about the house in those terms.  Lead them from room to room without rushing.  At the end of the tour, ask if they have any questions or if they'd like to see anything again.  Have your contact information ready to give them on a small note or card.  Coming off as polite and prepared will make you seem like someone with whom they could enter a real estate transaction with minimal hassle.
*Keep it positive.  Be honest, but do not dwell on the home's flaws or offer apologies like "Sorry it's so messy in here!"  If you're selling your house because of a divorce, lost job or other personal tragedy, do not discuss these issues with your buyers, even in jest (i.e., "I could have kept this house if my husband could have kept his pants up!")  Make your entire interaction with them as positive as possible.  You want them to leave your home feeling happy and excited at the possibilities.
*Secure your valuables.  Lock up everything truly irreplaceable in a safe location before you open your home to strangers.  Don't let your buyers walk around unsupervised; if they ask for a moment alone, try to give them some privacy in the yard or the kitchen.
8. Navigate financing. Most sellers assume that the buyer has been through the process and know the stages of buying a home. The fact is, that this is one of the many valuable services that a Realtor would normally provide, but now it is left to You, the seller, to walk them through choosing a mortgage broker to getting to the closing table. By aligning yourself with a local mortgage company first, you are giving the [[Shop for a Home Loan|loan officer]] leads in return for assisting you with the transaction, a virtual win-win. Mortgage brokers often have clients that are approved but have yet to find a home; this is a great way to tap into their client list to find a qualified buyer. The broker should also estimate the closing costs for your home and give you strategic financing tips for marketing (Zero Down, 2-1 Buydown options, Interest only options or community funding & grants available). Financing can sell a home just as quickly as good staging.
9. Be prepared to negotiate. If a buyer says he or she likes your home but is not sure about buying it, this is your opportunity to sweeten the deal. Did you notice the buyer looking longingly at your new barbecue? Throw it in. Did they seem dismayed that the patio hadn't been varnished for awhile? Say you'll come down $500 to cover the cost of revarnishing. Giving up an appliance or making a small concession for home improvements could cost you less than continuing to pay a mortgage on a house you don't want.
10. Try to close cleanly and quickly. Once the buyer is making offers and negotiating, try to close the transaction as quickly as you can. Make sure you've provided all the necessary disclosure documents required by your state. If you don't like the buyer's offer, don't just say no. Always make a counter offer. Try to accommodate the buyer wherever you can afford to. Also, consider taking the offer to a lawyer for professional evaluation. Once everything is settled, try to move out as quickly as you reasonably can.

10 Things to consider before buying an old house

It looks so pretty: the detailed gingerbread porch trim, or the massive stone fireplace, or charming bay windows and nooks and crannies. But should you actually BUY the old house, or just admire it on the house tour?

Here are some questions potential 'this old house' homeowners need to ask before signing on the dotted line.

1.) How old is it? Don't believe the real estate tax records, which are often nothing more than a guess. Whether your research happens via an experienced architectural historian or some old-fashioned sleuthing at the library, try to narrow the house's construction date down to a certain decade if possible. The information will help you in all future decisions about the house.
2.) Is the foundation ok? No sense spending tens of thousands of dollars on a restoration quality paint job if the bricks in the cellar are crumbling or the only thing holding up the walls are the termites holding hands. A home inspector by someone KNOWLEDGEABLE about OLD HOUSES should help you determine if the foundation is solid, or fixable.
3.) How's the plumbing? Make sure you know whether the toilets and sinks are operating under their original (ie at least 50 years old) cast iron plumbing, or if new PVC plumbing has been added- and if so, when. You will want to know whether you need to replace all the plumbing in the bathrooms and kitchen, as you will have a tendency to want to use these rooms for their intended purposes.
4.) ...and the electric? If the power is run on old knob-and-tube wiring, and has never been upgraded in terms of wattage, you will need to know this when purchasing a historic home- particularly if you enjoy using washers and dryers microwave ovens, or computers. A complete electrical overhaul means a pretty penny, so you'll need to know this going in.
5.) Hot and Cold How is the house heated and (if at all) air conditioned? Old radiators are great for warming mittens in the winter, but an oil heating system can cost a lot to maintain. If you are a person who cannot stand to be hot and there is no central air in the house, figure in the cost of adding room air conditioners to cool the space you'll need to cool.
6.) Cooks in the Kitchen If you happen to prefer gourmet cooking and are addicted to shows on the Food Network, take this into consideration when shopping for an old house. Avocado green 1970s appliances may not fit into your gourmet vision, so the cost of a kitchen upgrade needs to be taken into account.
7.) The Roof! The Roof! Keeping rain from entering the home is a popular priority for homeowners. It may not be realistic in the case of a century-old charmer which, no matter how many roofers try, continues to leak periodically in a variety of spots. Roof replacement can be one of the most costly old-house repairs, so you'll want to add this to the tab before you ante up.
8.) Windows to the Soul ... or just to the house, but keep your eyes open. Are the windows original? If so, do they have storm windows? When were those added? Old houses, depending on when they were built, can have a few small windows or many large ones, each with its own amazing draft-producing ability. Consider the cost of installing (possibly custom) new windows if this is a priority for you. If you love the look of those old original wavy glass beauties, buy LOTS of caulk.
9.) If the Walls Could Talk... we'd tell them to fix their own cracks. But they'll be looking to you for that, so be ready. Does the house contain its original plaster? Experts usually recommend retaining this, as it adds insulation value to the house- but the phone book is full of many drywallers, few plasterers. Be aware of the options in terms of repairing materials in the home's walls and ceilings.
10.) Floored Are the floors original? Hopelessly sagging? Covered in burnt orange shag wall-to-wall smelly carpet that needs to be removed asap? Restoring original flooring is often a popular old-house activity and can often be done in a do-it-yourself fashion, but you'll want to know what 'lies ahead'.
But the big question:
Is this home? You will be able to think of dozens of reasons NOT to buy a historic house. But some the reasons in favor are less tangible. Is the house in a neighborhood where your kids can walk to school or ride bikes to the library and ice cream shop? The house was probably built of old strong wood, brick, or stone- and built to last forever. There may be the coziest fireplace you've ever seen- begging for someone to read books or knit nearby. You may not be able to find these intangible benefits in a vinyl-clad subdivision.
So if you've fallen in love with a sunset-facing porch, it may be saggy and have peeling paint, but it just may be that the old house needs you as much as you need a home.

Check us out at: http://SafePath4u.com

Transition from Renting to Owning

While considering the choice between renting and buying, or deciding about how much home you can afford to own, consider making "practice payments" to a separate savings account.

Start by calculating the amount of money above your current payment that you believe you could spend on a home and set that amount aside each month. This can work for you in several important ways.

First, you'll have the opportunity to test and fine tune your budget before committing to a purchase.
If you find that you would be more comfortable with a few more dollars in your pocket each month, you'll have time to adjust your home search criteria before making an offer or applying for a mortgage.

Second, you'll be building up a cash reserve fund. This cash reserve will be peace of mind in the weeks leading up to closing and can help you with both expected and unexpected costs after you move into your new home.

Third, you'll have some down payment money. If you manage to save an extra $300 per month for 1 year, that's $3600 after 12 months. In areas where FHA loans are common, a 3.5% minimum down payment would be about $7000 on a $200,000 home.

A knowledgeable real estate professional can help you decide how much home you can afford, what type of homes are available in that price range, and whether home ownership suits your lifestyle. With a little bit of planning ahead, and perhaps a few months of practice payments, you'll be ready to make your move.

Check out our website at: http://SafePath4u.com

The 7 Biggest Mistakes People Make When Picking a Contractor and How to Avoid Them

Mistake #1 – You pick a contractor based only on price!

The old adage is really true: "You get what you pay for." This is especially true in the contracting business. If you want good contracting you should decide to deal with a contractor because of the overall value you receive, NOT because they are the lowest priced.

Here’s why…

Value = Quality + Service + Price

It is impossible for any company in any industry to offer the cheapest price, have the highest quality, and provide the best service all the same time.

You can get high quality and super service, but you can't get both and still get the lowest price. Just like in your business, you hire the best people and buy the highest quality product – consequently, you have to charge more for your services.

Total Value is all three: Quality, Service and Price!

The 3 most common problems YOU WILL have when you pick a contractor who only offers the lowest price:

1. The first problem is that dirt-cheap contractors usually don't stand behind their work if there is a mistake. Sure, other contractors might do your job for a little less money, but how will they treat you when there is a mistake with your job? To give the cheapest price, they usually have low-wage, inexperienced employees that have not been adequately trained. They also cut corners by using cheaper material and labor to give that low price. The end result is that you get what you pay for. And the little bit of money you saved ends up costing you more in the long run! Believe me, this is a little saying we tell our customer: "The good feeling of a cheap price is long gone before the stench of poor quality is ever used up." Also, "the bitterness of poor quality remains long after the sweetness of low price is gone."

2. The second problem with a contractor who offers the lowest price is that they tend to also offer the lowest quality. Your heating and air conditioning system is the biggest appliance set in your home, and the most costly to operate. It is also one of the best investments you can make in your home if done properly.

Plainly said, "Shoddy or low quality contracting because of cheap price costs you money." No amount of savings is worth this. You've worked too hard and spent too much money on your home to throw it away for the few cents you save on a contractor instead of investing in the life of the system.

3. And the third reason why picking the cheapest contractor is a problem is that you might get charged extra for things other contractors normally include in their quote in the first place. You'll be charged extra for such things as a filter, thermostats, overtime due to bad estimates, or application of permits. Cheap contractors nickel and dime you to death. What seemed like a good price actually ends up costing you more in the end. This is just a tactic cheap contractors use to get in the door.

To avoid buying on price alone, we suggest you choose two or three contractors and rank them in the order that is important to you such as Quality first, Service second and Price last.

Mistake #2 – You Think All Contractors Are The Same Every contractor is different. No two contractors are really the same. Every contractor has different equipment and different employees who know how to do certain kinds of jobs well. Every company has a different number of employees, each with different abilities. Contracting is art and craftsmanship combined. Most people who hire contractors don't truly understand that despite all of the technological advances, contractors still use the same quality work habits as twenty years ago. Contrary to what a lot of people think, heating and air conditioning is not just banging on the furnace or air conditioner, cleaning filters or charging refrigerant. It takes craftsmanship to turn out quality work. Contractors have to diagnose, measure and perform complicated calculations before they can start a job. Communication is the key to picking the best contractor for YOU. - Ask what type of work they do. - Ask how long they have been in business. - Ask what is the timing required to finish the job. - Ask if they or subcontractors do the work. - Ask if they are using skilled technicians or cheap laborers. - Ask any other questions that are unique to your needs. This will help you decide whether they are the best contractors for YOU! After you ask your questions, it will become obvious which company you should choose. The company that wants your business will prove to you that they are the best contractor to do your work. Take your time to decide which contractor you would like to use – but when you decide, you must be loyal to them (See Mistake #3). Mistake #3 – You always have three or more contractors competing with each other for your work. You may think this is good way to do business; it is to some extent. But here is why it usually isn't a good way to deal with contractors. A good contractor has enough loyal customers so that they don't have to deal with price shoppers. Once you find a good contractor, you must be loyal to them. If you flip-flop from contractor-to-contractor, a good shop won't be too motivated to keep YOU as a customer, and you'll be left "out in the cold" literally when you most need them. Price is important. But price should not be more important than good quality and good service. This is what people typically like to do. They try to get everyone fighting for the same piece of pie. This might be an OK short-term strategy because you save a few bucks. But when you need a favor or super fast service, not one of these companies will instantly bend over backwards to help you. (And if you have been a price shopper in the past, they will probably charge you more!). Every contractor expects to bend over backwards for their loyal customers now and then. He or she might have to work all night or on a weekend to do a super rush job or pull off a miracle. Provided the customer is loyal, the contractor will do all he can to help you meet your needs. All good contractors will be loyal to you if YOU are loyal to them. Keep loyalty in mind when you pick your contractor. Mistake #4 – You think having the right equipment is all a contractor needs to do your job! Many contractors own great equipment, but that doesn't mean they know how to use it. You can have the "latest, greatest technological wonder gizmo," but if you don’t know how to use it properly, you are better off not even picking the darn thing up. Compare this to using all of the complicated controls on your VCR. Studies show that half the people who own a VCR don’t even know how to set the clock, let alone use its advanced features. The same thing happens in the contracting industry. Many contractors have tools that have a lot of bells and whistles, but if he's a technician who doesn't know how to use the new features, you might as well go to a company that has old equipment. Make sure the technician is experienced and trained. This ensures your work will get done right the first time. And on time! Mistake #5 – You don’t give your contractor enough time to complete your job properly! Mistakes happen when you rush! When you're in a hurry, you may forget to tell your contractor certain instructions. Or you might make a mistake in judgment or purchase decision because you were concentrating on getting it done, instead of getting it done right. Schedule. Schedule. Schedule. Before you work on your contracting project, talk with your contractor. Get your contractor involved from the beginning because there might be more efficient way to finish your project on time that you don't know about. You can save time, money and headaches from the very beginning by communicating with your contractor! Why do most people do the opposite of this and wait until the last minute to talk to the contractor? Because everyone takes the contractor for granted. Everyone thinks the contractor can easily take care of his or her work. Most everyone thinks the contractor is sitting around waiting for his or her job to come through the door. This isn't the case. You should think of your contractor as your "project partner." Consult with your contractor. Let them know in advance what you want installed or fixed. Ask them if there are any tips they can give you to make your job go more smoothly. You are not the only customer your contractor has. When they walk in the door and you're saying you need it now, a contractor can't always help you. YOU need to work together. Mistake #6 – You pick contractors who don’t guarantee their work. All reputable contractors guarantee their work automatically. This means if they make mistakes on your job, they will re-do or fix your job at no charge. Unfortunately, there are unethical contractors who won't do this. Instead, they won't make good on your work and may not take any responsibility for their mistakes. An unethical contractor may hold your work hostage. Or they may say they will fix your job, but pin the problem on you and tack on an extra charge. There are about a hundred other things a not-so-good contractor may do to you. The best thing you can do is pick a contractor who unconditionally guarantees their work. If it's not done right and it's their mistake, they will do it again or fix it. Mistake #7 – You don’t ask for references. This is probably the easiest way you can avoid any problems with a contractor. ALL good reputable contractors will eagerly give you references. Ask your contractor to give at least three names of people with whom they have done business. Also, ask them how long they have worked with this customer. Ask them what type of job they did for those references. Try and get the names of customers who had similar things done that you need done. This is the easiest way you can pick the right contractor for YOU! Bonus! Bonus! Bonus! Mistake #8 – You don’t understand the "lingo." Alright, this wasn’t one of the original seven mistakes. But it IS important. It's so important, I decided to define twelve of the most common air conditioning and heating terms so YOU understand what contractors are saying! BTU: (British Thermal Unit) – The amount of energy that’s needed to change the temperature of one pound of water by one degree Fahrenheit. This is how the heat removed from your home for cooling or added to your home for heating is measured. Ton: The unit used to measure the capacity of an air conditioning system. One ton of air conditioning removes 12,000 BTU’s of heat energy per hour from your home. CFM: Cubic Feet of Air per Minute. This is how the amount of air your central forced air heating and/or cooling system is measured. Less CFM is required for heating than cooling since warm air is lighter. Additionally, it takes 400 CFM to move one ton of air conditioning. Coil or Evaporator: Looks like the radiator on your car. Usually installed inside the box on top of your furnace. It takes the heat and moisture (humidity) out of the air as the refrigerant (also known as Freon or R410A) circulates through it. Horsepower: One horsepower equal to 9,000 BTU/hr (check with your contractors exactly how many BTU/hr when they quote in horsepower) Fan Coil: The air conditioner unit that is installed inside the house. It takes the heat and moisture out of the air as the refrigerant (what you might know as gas) evaporate. Refrigerant: This is the real name for what many people call freon or R410A. It’s the fluid that evaporates at low temperatures and pulls heat and humidity out of the air to remove heat from your home in the summer, and put heat in your home in the winter if you own a heat pump. Condenser: This is the unit outside the house that’s usually making all the noise (at least in the older models). This holds the compressor that is called the heart of your system. In addition, it also transforms your refrigerant (freon/R410A) from a gas to a liquid. Finally, there’s a fan discharging heat to the outdoors. Compressor: The heart of your air conditioner. It moves the refrigerant from the condensing unit to the fan coil unit and back to the condensing to form a cycle. Split System: The most common type of home comfort system in the country. Some components are inside the home and others outside. Inside is the furnace which has an evaporator coil. Outside is the condensing unit. S.E.E.R.: Seasonal Energy Efficiency Rating. Air conditioners and coils are rated by S.E.E.R. Higher S.E.E.R. ratings use electricity more efficiently, meaning you will use less kilowatts to cool your home and therefore reduce your monthly utility bill. A.F.U.E.: Fossil fuel furnaces and boilers are rated by Annual Fuel Utilization of Efficiency. Higher A.F.U.E. ratings burn the fuel more efficiently, meaning you will use less gas, propane or oil to heat your home and therefore reduce your monthly energy bill.

Advantages of Buying

There are many advantages to owning a home:

1. Security: A feeling of security that comes from owning a home and the knowledge that your home is a safeguard against inflation. You are the only one that will have the keys.
2. Investment: Payments on your mortgage mean that you are acquiring a major possession over time. Instead of rent, every payment you make means you own more and more of your home. The garden that you plant, the permanent improvements you make - all enhance your way of living as well as the value of your home.
3. Tax Advantage: Depending on your situation, all or portions of your real estate tax and interest on your mortgage may be deductible from your income tax. Check with your accountant to see what benefits home ownership may have for you!
4. Saving Money: Buying is usually cheaper in the long run. In the first few years renting may be cheaper but over time the interest part of your payment should be lower than comparable rent.
5. Leverage: You can buy a house nowadays with very little down. This is not possible with many other types of investment. Imagine you buy a house for $600,000 with 5% = $30,000 down payment. If the house appreciates in one year by only 5% (current inflation) = $30,000 then you now have increased your equity by 100%. Of course leverage works the same way against you - if the house loses 5% in value then you just lost all your equity. This can be a little like playing roulette. Do not believe anyone who tells you that a certain property is guaranteed to go up in value. If that was so, why does this person not buy it himself/ herself? I do not recommend buying a home as a short-term investment as in "less than 10 years".

Some other advantages of home ownership include:

• Sense of pride: This is a "feel good" reason -- but it's true, at least for most people. You'll have a greater sense of accomplishment when you own a home.
• Steady payments: As a renter, you run the risk of your lease cost going up. With a fixed rate loan, you can set your payment and keep it there for the duration of the term.
• Better credit opportunity: It will be a lot easier to apply for other loans if you already own a home. You can build equity over time and borrow against that equity if you choose to. Credit card companies typically favor homeowners, which is why you've probably noticed that one of the early questions in credit card applications is, "Do you rent or own a home?"
• Freedom: You can do whatever you want to your home. You don't need the landlord's approval every time you want to paint or redecorate.

We deal with many properties and have access to some great real estate ownership opportunities. Feel free to contact us and let us help you down a brighter path. http://SafePath4u.com

5 Mistakes to avoid if you're thinking of buying a forclosure

Mistake #1 - Fooled By The Sticker Price
While the price you negotiate for a foreclosed home in Warwick may be significantly less than its value just a few years back, many such homes often require substantial repairs. Even if a house is only a few years old, it can deteriorate quickly. Therefore, unless you are planning on making these repairs yourself, be prepared to reserve an additional 10 percent of the purchase price for potential labor costs. It's important to keep these repair costs in mind when negotiating, so you do not end up foolishly overinvesting in a foreclosed property.
Mistake #2 - Waiving The Home Inspection
Foreclosed properties are often advertised "as is" with higher discounts offered to buyers willing to waive a home inspection -- something (for reasons stated in Mistake#1) is never advised to do. Often such homes are neglected by owners who stopped caring about their home once they stopped making their mortgage payments. Inspections on many foreclosed properties commonly reveal leaky or damaged roofs, rotting foundations, malfunctioning plumbing, electrical, and mechanical and heating systems, mold and radon contamination and termite infestation. Without having an experienced home inspector examine these components thoroughly, a buyer could inherit a much larger and costlier repair job than expected.
Mistake #3 - Looking For A Quick Flip
With many foreclosed homes expected to decline significantly in value in the near future, you need to think of a foreclosure as a long-term, rather than a short-term, investment. If you are just trying to cash in on a quick flip, a foreclosure is not for you. Only investors with the financial resources and patience for a long-term real estate investment and homeowners who can afford a fully amortized fixed-rate mortgage should consider buying a foreclosed property,
Mistake #4 - Ignoring Location
Inexperienced buyers often assume discounted prices offered on Warwick foreclosures will compensate for a location in a less desirable neighborhood. As with any other kind of home purchase, your search should always focus on the worst homes in the best neighborhoods, to ensure yourself of the highest resale value in the future.
Mistake #5 - Cloudy Title
If you find a foreclosure property you like, request a title search be done right away to ensure there are no liens on the property resulting from such things as unpaid mortgages, home equity loans, or unpaid property taxes. These judgments often include late fees and other fines, and must be satisfied before the property can be sold.

We are always availible by phone (401)633-5254, email SafePath4u@aol.com , our blog or through our site at http://SafePath4u.com

Real estate owned or REO is a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property. This is commonly the case when the amount owed on the home is higher than the current market value of this foreclosure property, such as with a high loan-to-value mortgage following a real estate bubble. As soon as the beneficiary repossesses the property it is listed on their books as REO and categorized as an asset (non-performing asset).

The term REO originates from the term Other Real Estate Owned (OREO), which is used on financial statements to classify real estate property owned by financial institution but which are not directly related to its business. The important distinction underlying OREO is between lenders versus companies for which real estate management is their primary business. Lenders are primarily in the business of making loans with the intent that nearly all of those loans will be repaid in full with interest. Seizing, managing and reselling real property collateral to recover unpaid loan balances is secondary to lenders' primary line of business.

In balance sheet terms, OREO assets are considered non-earning assets for purposes of regulatory accounting. In the context of national banks in the U.S., the term OREO is legally defined by the Office of the Comptroller of the Currency in regulations promulgated pursuant to 12 U.S.C. § 29.

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Preforeclosure or Short Sale

When a property owner fails to make their mortgage payments for a number of months they are in default. The first step of the foreclosure process (which typically takes a few months) that the lender will take is to file the notice of default. This is a public document that is recorded. The property owner will contract to sell the home conditioned upon the lender accepting a lesser amount than what is owed on the mortgage. Note that there are no similarities between a real estate short sale and selling a stock short.

In many jurisdictions of the United States, the seller is responsible for taxes on the amount of the mortgage left unpaid after the sale as ordinary income.

The Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec 20, 2007, generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. The original effective date was through 2009 but in October 2008, legislation extended the relief through 2012. Use IRS form 982 to handle the debt relief provision.

If you are facing a financial hardship, we can help you. You can find us at http://SafePath4u.com